Part 4Loss relief
Chapter 7Losses from miscellaneous transactions
Loss relief against miscellaneous income
152Losses from miscellaneous transactions
F11
If in a tax year (“the loss-making year”) a person makes a loss in a relevant transaction, the person may make a claim for loss relief against relevant miscellaneous income.
2
A transaction is a relevant one if, assuming there were profits or other income arising from it—
a
those profits or that other income would be F6income on which income tax is charged under, or by virtue of, a relevant section 1016 provision (“the relevant provision”), and
b
the person would be liable for income tax charged on those profits or that other income.
F32A
A relevant section 1016 provision” means a provision to which section 1016 applies, other than—
a
regulation 17 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) (treatment of participants in non-reporting funds: charge to tax on disposal of asset), or
b
Chapter 9 of Part 4 of ITTOIA 2005 (gains from contracts for life insurance etc).
3
The claim is for the loss to be deducted in calculating the person's net income for the loss-making year and subsequent tax years (see Step 2 of the calculation in section 23).
4
But a deduction for that purpose is to be made only from the person's F8relevant miscellaneous income.
5
F2 The person's “relevant miscellaneous income is so much of the person's total income as is—
a
income or gains arising from transactions, and
F9b
income on which income tax is charged under, or by virtue of, the relevant provision.
This is subject to subsection (6).
6
If the loss was made by the person as a partner in a partnership, the transactions covered by subsection (5)(a) are limited to transactions entered into by the partnership.
7
F108
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9
This section needs to be read with—
a
section 153 (how relief works),
b
section 154 (transactions in deposit rights),F4...
F5ba
section 154A (anti-avoidance), and
c
section 155 (claims).